First Data Corp.'s joint venture with Bank of America Corp. helped narrow its losses in the second quarter.
The Atlanta processor reported a net loss of $171.2 million in the quarter, 25% smaller than its loss in the same quarter last year. Revenue climbed 18.1%, to $2.61 billion, driven largely by gains in the Banc of America Merchant Services LLC venture it formed with B of A in June 2009.
Revenue in First Data's retail and alliances services segment, which includes the joint venture, grew 13%, to $853.7 million. Excluding the joint venture, transaction volume climbed 9%, and there was "double-digit revenue growth" in its Telecheck, prepaid card and point of sale equipment operations, the company reported Tuesday. Merchant services revenue grew 24.6%, to $883.8 million, and revenue in its card services unit fell 5.1%, to $431.1 million. The check services unit had revenue of $97.8 million, up 15.6%.
Revenue from the financial services unit was $351.4 million, down 7%. This included $40 million lost from the termination of its contract with Washington Mutual Co., which is now owned by JPMorgan Chase & Co.
International revenue grew 3%, to $387 million, in part because of an alliance with ICICI Bank in India.